SBJ Unpacks: Coronavirus -- MLB Eyes Rapid-Result Testing

Not since the deep, dark winters that were common in the '80s and '90s have MLB and the MLB Players Association stood swords ready at so ill calculated a time.

Whether this is a misunderstanding, a misread or a negotiating tactic by either side, the fact that they have so visibly become just that -- either side, as opposed to two about to put aside their differences -- is a mistake.

Reasonable baseball fans -- the overwhelming majority of them -- would not quarrel with any player who opted to forfeit a salary rather than wade into the great unknown with their health, and that of their loved ones. They might even forgive owners who thoughtfully, and regretfully, cancelled the season because even after reasonable compromise, the finances were far from penciling out. They would mourn. But they would return, cap in hand, when called.

But if this is perceived as a dispute over money -- billionaires arguing with millionaires, yet again, this time when fans in some MLB markets are waiting in line for donated food -- it will be a pox on both their houses so deep and wide, it will make them long for the days that came after the cancellation of the 1994 World Series.

It’s hard to envision the PA accepting a deal that ties payrolls directly to revenue, as the owners have suggested. But perhaps a guarantee can be negotiated -- a reduction of contracts to a set percentage, based on what clubs will lose from ballpark revenue if no fans are allowed in.

Were these normal times, you could chalk this up to artful negotiation -- management and union each operating with an eye on the clock, knowing that it wasn’t until zero hour approached that the best deal would reveal itself.

These are not normal times.

--- Bill King

MLB PRESENTING PROTOCOLS FOR ROUTINE RAPID-RESULT COVID TESTING

• By the end of this week, MLB plans to present to the union and all 30 clubs more than 80 pages of medical protocols that are expected to detail the league’s plans for routine rapid-result COVID-19 testing of players and essential game-day employees, reports SBJ's Eric Prisbell. Those tests could be administered daily if circumstances warrant. Testing would be conducted by a centralized Utah-based lab used frequently by MLB, in part to avoid detracting from medical services that may be needed for the general public.
  
  
• The health and safety components of MLB’s return-to-play plan are the critical issues being addressed first with the union -- before contentious player compensation issues are tackled -- as both sides look to forge an agreement to start a historic 82-game regular season in early July, which would at least initially begin in spectator-less ballparks. An MLB official with direct knowledge of the proposal spoke to SBJ about medical protocol specifics on condition of anonymity because they are not finalized.
  
  
• For frequent testing of asymptomatic individuals, samples will be sent to the Sports Medicine Research & Testing Laboratory in Utah, which is MLB’s minor league drug testing laboratory that has now been converted to a COVID-19 testing lab. The Utah lab will do the testing because the infrastructure of collectors and how to ship samples is already in place. The turnaround time will be 24 hours. Dr. Daniel Eichner, the president at SMRTL, also helped spearhead the recent antibody study in which thousands of MLB employees submitted to antibody tests.
  
  
• For more on MLB's testing plans, click here.

BORAS REITERATES MLB PLAYERS WONT GIVE ANY MORE CONCESSIONS

• MLB agent Scott Boras reiterated to SBJ's Liz Mullen that all of his about 100 player clients are steadfastly behind the MLBPA's position that the players already have a deal on player compensation  Boras also said that the league could make millions on media rights if games are played under the terms of the agreement MLB and the MLBPA negotiated and signed in March. 
  
  

• Although the agreement the union signed with MLB in March says nothing about revenue sharing, it does say that owners will supply as many games is as economically feasible, and Boras said those conditions exist now, even during the pandemic. "The owners will make millions of dollars from the media and sponsorship, apart from what they get for attendance," Boras said. "You have to question, why did the owners sign that deal? They knew it was economically feasible to play a season as long as they knew they only had to offer as many games as the virus would allow."
  
  
• Boras said he has not made any layoffs from his agency, Boras Corp. Boras: "I don't expect them to, in any way, bear the consequences of the operation and ownership of this company. They are salaried employees. Just like when we have gains, they don't benefit from the gains."
  
  
• For more from Boras, click here. 

PROPERTIES, AGENCIES FORM TENTATIVE PLANS FOR OFFICE RETURNS

• With states beginning to open up across the sports industry, there’s initial talk of returning to brick-and-mortar offices, which have been closed since mid-March, reports SBJ's Terry Lefton. Rules will vary widely by state, and there will surely be a fairly sizable portion of staffs that will stay virtual. But for the first time, there’s some consideration being applied to what a post-pandemic office environment will look like.
  
  
• USA Triathlon, shuttered since March 10, hopes to re-open its Colorado Springs offices June 1. CMO Chuck Menke said the plan is to have no more than half the NGB’s 60 staffers in the office at once, making scheduling the imperative. “Our office manager is assembling a war chest of masks," said Menke. “For now the plan is not to have any meetings there that aren’t virtual and I’m thinking anyone’s conference rooms won’t be used for a while.’’
  
  
• Paragon Marketing Group has temporarily closed its Chicago office and will operate solely from its suburban Skokie, Ill., location, where it occupies a full wing of a building. Again, it will be a rotational system, with around a third of the employee base working from the office at any one time. “Normally, around a third of our employees are out doing events on a given day, and we’re anticipating that being the case again in the somewhat near future,’’ said Exec VP & Partner Tony Schiller, who is hoping to be back as soon as July. “That could be ambitious, but we need to be prepared."
  
  
• At licensed sports hard-goods giant WinCraft, 450 of the 600 employees in March are now back at the Winona, Minn., plant and HQ.  The pandemic has catalyzed enough demand for masks that the licensed collegiate, MLB, NHL and NASCAR masks are being called “Our fastest product launch ever” by WinCraft President John Killen. He added there is “less than three weeks from conception to retail shelves.” Around 80 office employees have returned and are practicing social distancing at every other desk.
  
  
• “Everyone’s looking at some sort of phased in approach and how to reconfigure your office for the most social distance,’’ said Drone Racing League President Rachel Jacobson. “When 95-100 percent of your workforce is remote, everyone’s thinking who it is that’s absolutely critical any more in an office,’’ she said.

WINDS SHIFTING TOWARD HAVING FOOTBALL IN THE FALL

• College officials are warming to the idea of playing football this fall -- even if the rest of the student body isn’t allowed on campus, writes SBJ's Michael Smith. That marks a significant change from the previous two months of quarantine. This week, Smith brought that issue up to a well-connected Power 5 AD. “That sentiment is changing,” the AD said. Sentiment is shifting based on three main reasons:
  
  
  • Revenue, of course. Football accounts for up to 80% of the revenue for an FBS athletic department, so even a shortened season would be better than nothing.
  • There’s a strong desire for a return to normalcy, and sports can lead the way.
  • We know more now than we did 4-6 weeks ago.
    
    
• For more on the chances of football this fall, see the rest of tonight's SBJ College.

CHARGERS LAUNCH SWEEPSTAKES FOR SMALL BUSINESSES

• The Chargers will give away a three-month sponsorship in a new sweepstakes for small businesses hit hard by the pandemic, SBJ’s Ben Fischer reports. The winner of “Bolt Up Your Business” will receive promotional assets at Chargers.com, two custom video pieces created and distributed by the Chargers’ content team and a co-branded lead generation sweepstakes promoted by the team. 
  
  
• More than 1,000 businesses entered the contest in its first day, which is being promoted primarily on LinkedIn, said Chargers CMO Steve Ziff. "What can you do to help a small business if you’re a football team?” Ziff said. “You can give them direct business, and the other side is giving them the ability to tap into your assets to help them grow.”
  
  
• Current exclusivity deals with major sponsors and other NFL rules limit the contest significantly, with major business categories including beer, casual dining and lending prohibited. But the rules still leaves room for many mom-and-pop stores in the L.A . area who would benefit by the brand alignment, Ziff said.
  
  
• The winner will be picked on May 25, and the sponsorship will run from June to August. The Chargers hope to eventually enlist a larger B-to-B sponsor to power the concept on a long-term basis. Official rules price the media assets offered in the giveaway at $25,000 for tax purposes, but an annual deal with an NFL team would sell for at least several times that on the open market. Ziff declined to comment on the price.

WORLD SURF LEAGUE AIMS TO "INNOVATE AND RESET"

• The World Surf League encompasses thousands of competitors from 52 countries, with events in 20 locales. In the midst of a pandemic, that globalism presents an obvious challenge to first-year league CEO Erik Logan, who was promoted to the job in January. The WSL season was supposed to start in Australia in late March, but the circuit remains suspended. The WSL’s next status update will be made in early June.
  
  
• The WSL is looking at how to deal with fans when (and if) the tours relaunch this year. Some competitions are held at remote locations where having throngs of fans wasn’t an issue. But others, like some of the Brazilian events, can draw 40,000 fans to the host beach.
  
  
• “When we get back to competition, we’re assuming it’s going to be a no-fan experience,” Logan told SBJ’s Bret McCormick on the latest SBJ Unpacks podcast. “That’s actually OK. I think our sponsors understand that. The fact that we made this pivot to a media company a year ago has really been leveraging all the great distribution and great content that we have, so from that perspective I think we’re already ahead of the game. Our business model isn’t so predicated about butts on beach.”
  
  
• Working out of his garage, surrounded by surfboards hanging from the walls, Logan said WSL is using the pandemic pause to innovate and reset. The organization will announce major alterations to its competition structure in July, driven in part by Logan asking his staff to think about aspects of pro surfing that they would change if allowed. That turned into a list of ideas, some of which will become reality following further encouragement from the WSL board to take advantage of the pandemic’s norm-shattering impact. “When we rethink broadcast, when we rethink travel, we rethink staffing, all of those sort of things, new opportunities open up,” said Logan.

Logan over the past couple months has been working out of his garage, surrounded by surfboards hanging from the walls

WORKING FROM HOME WITH RED BULLS EXEC JOE STETSON

• After quarantining in their N.Y. apartment for eight weeks, Red Bulls Chief Marketing & Revenue Officer Joe Stetson and his family temporarily relocated north of the city to a friend’s vacant house in Westchester. Stetson has been trying to get a head start on his day around 6:00am before his kids, Penelope and Isaac, wake up. “By 9:00am I head into a separate room to do my virtual meetings/calls -- I average about 12 video/phone calls a day to take me to about 7:00pm. My wife, Stacey, has been my savior throughout this, as she and the kids will bring me meals (including a killer avocado toast) and plenty of coffee to my desk.”
  
  
• Communication amongst Red Bulls staffers has improved during this time, Stetson said, mainly due to GM Marc de Grandpre’s edict to stay engaged and in constant contact with each other. “That has become a real positive and has caused us to execute really well despite the challenges,” Stetson said. One bright spot was Red Bulls goalkeeper Ryan Meara’s virtual address to the entire organization, talking about his family of first responders in N.Y., including his girlfriend (nurse), father (FDNY) and brother (NYPD). Stetson: “His emotional message really provided a unique perspective for all of us to consider.”
  
  
• Stetson is certainly enjoying a break from apartment life: “Although I admit I could use more exercise, I have been getting my steps during the days during business phone calls that are video calls (three miles yesterday pacing around outside).”  He added, “I do love the fact that I am home in the evening to play with the kids and help give them a bath and put them to bed.” When Stetson isn’t watching continuous episodes of “Hey Duggee” and “The Loud House” with his kids, he’s been enjoying “The Last Dance” and has been digging into Doris Kearns Goodwin’s book “Leadership In Turbulent Times.”

• Want to share what your work-from-home setup is like? Reach out to SBJ's David Rumsey.

Stetson and his family have temporarily relocated to a friend’s vacant house in Westchester

SPEED READS

• As the NHL "contemplates how to turn empty arena games into must-see television spectacles," virtually transporting fans into those barren stands to watch playoff action "would have been a game-changer," writes ESPN's Greg Wyshynski. But a source who has worked on the NHL's VR ventures said, "Unless the camera tech and compression technology gets better, it would be a very hard lift to have VR be the primary broadcast." Until then, Wyshynski writes, virtual reality is "still a pipe dream for the NHL."

• Tonight in SBD Global: The EPL has been told by the U.K. government that it "must show some matches free-to-air" and put more money into the English Football League and grassroots game "as a condition for restarting this season." The EPL is in negotiations with its broadcast partners Sky and BT over "finding a solution to showing some matches free-to-air when the season resumes."

• As sports do return, the crowds may skew toward an older audience, as younger people are feeling the brunt of the unemployment crisis, writes SBJ's David Broughton. Around 38% of the more than 36 million jobless claims that have been filed since mid-March were done so by workers aged 18-34, meaning the youngest American adults are the most impacted by job loss right now, per data from polling company CivicScience.

NEWS YOU NEED FROM SPORTS BUSINESS DAILY

• During this crisis impacting the sports business, we want everyone to be up-to-date on the latest news and information. SBD's "Coronavirus & Sports" section is free, outside the paywall, for the foreseeable future. Below are today's headlines:
  
  
  • MLB Concerned About Second Wave Of COVID-19 Impacting Playoffs
  • Scott Boras Reiterates Players Won't Give Any More Concessions
  • Sources: Silver Aiming For Decision On NBA Season Restart In 2-4 Weeks
  • British Columbia Premier Pitches Province To Host NHL Games
  • Sporting KC To Test Players As MLS Moves Toward June Restart
  • Timbers, Thorns Owner Expects To Lose Tens Of Millions Due To Hiatus
  • USTA Begins Exploring Alternative Host Sites For U.S. Open
  • NASCAR To Have Healthcare Workers Serve As Grand Marshals
  • Nationals' Dave Martinez Designs "Stay In The Fight" Masks

SBJ UNPACKS -- WEATHERING COVID-19

• Check out the most recent editions of our "SBJ Unpacks" podcasts around COVID-19:
  
  
  • SBJ’s Bret McCormick spoke with WSL CEO Erik Logan to hear how the organization is dealing with the pandemic.
  • Bill King speaks with management consultant Dale Caldwell about techniques to navigate a time of unprecedented, wide-spread stress.
  • Terry Lefton is joined by veteran fitness industry exec Tom Cove to discuss the effect of the pandemic on sports equipment manufacturers and marketers.
  • Bill King and Eric Prisbell discuss what leagues, networks and tech companies are considering as they plan for broadcasts of games played without spectators.
  • UFC COO Lawrence Epstein joins Bill King to discuss the ways it revamped event operations in order to resume fighting.

SIGN UP NOW FOR LEADERS WEEK DIRECT: MAY 18-21

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Something related to coronavirus and sports business catch your eye? Tell us about it. Reach out to Austin Karp (akarp@sportsbusinessjournal.com) and we'll share the best of it.